THE Penang Land and Mines Office is reminding all property owners to take advantage of the 100% penalty waiver for overdue land and parcel tax payments before the deadline on Feb 28, 2025.
This initiative, announced by Chief Minister Chow Kon Yeow in December last year, aims to encourage tax payments and reduce outstanding arrears.
Penang Land and Mines Office director Dr Faizal Kamarudin explained that the incentive is part of the government’s effort to facilitate tax collection and ease the financial burden on property owners.
“As of Dec 31, 2024, the total outstanding land and parcel tax in Penang stands at RM31.65 million, while unpaid penalties amount to RM39.26 million.
“By taking advantage of this offer, property owners will only need to pay their 2025 taxes and any previous unpaid taxes, without incurring additional penalties,” he said.
After February 2025, a 50% reduction in penalties will be offered to those who settle their outstanding payments. This offer is for those who pay their arrears between March 1 and May 31, 2025.
The waiver and discount are only for lump-sum payments.
Strict Enforcement for Non-Payment
Dr Faizal also emphasised the legal consequences for those who fail to pay their land and parcel taxes.
“Under Sections 97 to 130 of the National Land Code, authorities have the power to forfeit properties with long-standing tax arrears, transferring ownership back to the state.
“In 2024 alone, a total of 191 properties were forfeited due to unpaid land taxes, amounting to an estimated RM67.47 million in land value.
“Property owners who lose their land will not only forfeit their real estate but may also face legal action from financial institutions if the property was mortgaged,” he warned.
No Excuse for Non-Payment
When asked about common reasons for non-payment, Dr Faizal noted that many land and parcel owners claim they did not receive their tax bills.
However, he stressed that this excuse is unacceptable, as land and parcel taxes are a legal obligation that must be settled annually.
“In several states, including Johor, Negeri Sembilan, Perak, Melaka, Kedah, Kuala Lumpur, Selangor, and Terengganu, tax bills are no longer physically issued.
“Under the law, land and parcel owners must pay their taxes between Jan 1 and May 31 each year. Any payments made after May 31 will incur penalties, and prolonged non-payment can lead to property forfeiture,” he explained.
The Penang Land and Mines Office urges all property owners to take advantage of the full penalty waiver before the deadline and avoid unnecessary legal consequences.
Story by Christopher Tan
Pix by Darwina Mohd Daud